LYNN & OR v A C FRYER & SONS LTD [2013] NZHC 2942

LYNN & OR v A C FRYER & SONS LTD [2013] NZHC 2942

The court found A C Fryer & Sons Ltd and its director Robert Fryer knew clearing Lot 2 required resource consent but made false representations (brochure, agent's oral statements, scheme plan, solicitor's letter) that induced Lynn/Lynn Brothers Farming Ltd to contract; those representations were misleading and deceptive in trade and actionable under the Fair Trading Act and converted into contractual terms under the Contractual Remedies Act, entitling LBF to the difference in value plus wasted costs; conversely, Peter Wild was not proved negligent despite having assumed responsibility, so negligent misstatement claim against him failed.

Citation
[2013] NZHC 2942
Parties
First Plaintiff: Murray Richard Lynn; Second Plaintiff: Lynn Brothers Farming Limited; First Defendant: A C Fryer & Sons Limited; Second Defendant: Robert Dennis Fryer; Third Defendant: Peter Wild
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 November 2013
Procedural Posture
Civil: Misrepresentation, Negligent Misstatement, Fair Trading Act 1986, Contractual Remedies Act 1979 / Judgment After Trial (high Court Decision)
Outcome
Judgment for plaintiff Lynn Brothers Farming Ltd against A C Fryer & Sons Ltd and Robert Dennis Fryer; negligent misstatement claim against Peter Wild dismissed; separate consent judgment recorded on third cause of action.
Legal Topics
Misrepresentation, Negligent Misstatement, Misleading and Deceptive Conduct, Inducement and Reliance, Measure of Damages, Significant Natural Area / Resource Consent
Contract Law Tort (negligence) Consumer Protection Law Property Law Environmental/resource Consent Law Misrepresentation Negligent Misstatement Misleading and Deceptive Conduct +3 more

Case Brief

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Parties

Murray Richard Lynn

First Plaintiff

Lynn Brothers Farming Limited

Second Plaintiff

A C Fryer & Sons Limited

First Defendant

Robert Dennis Fryer

Second Defendant

Peter Wild

Third Defendant

Procedural Posture

Civil: Misrepresentation, Negligent Misstatement, Fair Trading Act 1986, Contractual Remedies Act 1979 / Judgment After Trial (high Court Decision)

Legal Issues

  1. 1 Did vendor know clearing required resource consent?
  2. 2 Did the statements (brochure, oral statements, scheme plan, solicitor's letter) constitute misrepresentations?
  3. 3 On FTA: was the vendor in trade; was director personally liable; was conduct objectively misleading; causation and loss?

Ratio Decidendi

The court found A C Fryer & Sons Ltd and its director Robert Fryer knew clearing Lot 2 required resource consent but made false representations (brochure, agent's oral statements, scheme plan, solicitor's letter) that induced Lynn/Lynn Brothers Farming Ltd to contract; those representations were misleading and deceptive in trade and actionable under the Fair Trading Act and converted into contractual terms under the Contractual Remedies Act, entitling LBF to the difference in value plus wasted costs; conversely, Peter Wild was not proved negligent despite having assumed responsibility, so negligent misstatement claim against him failed.

Court Disposition

Judgment for plaintiff Lynn Brothers Farming Ltd against A C Fryer & Sons Ltd and Robert Dennis Fryer; negligent misstatement claim against Peter Wild dismissed; separate consent judgment recorded on third cause of action.

Orders

  • Judgment for plaintiff Lynn Brothers Farming Ltd against A C Fryer & Sons Ltd and Robert Dennis Fryer in the sum of 383670.80 NZD
  • Award of wasted expenditure to plaintiff in the sum of 27670.80 NZD (included in total judgment)